Uber CEO Resigns Following Leadership Crisis He Created

Eric Newcomer, Bloomberg

- Jun 21, 2017 2:15 am

Skift Take

The thinking behind Uber has had a transformative effect on transportation in major cities around the world. But the disruption it created relied on tactics and a mentality that was the polar opposite of the progressive, groundbreaking business it wished to be seen as. The question isn’t can it maintain its valuation without Travis, but how long it would have survived at these heights under any circumstance.

— Jason Clampet

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Uber Technologies Inc. Chief Executive Officer Travis Kalanick has resigned, capping a series of controversies that have rocked the world’s largest privately backed startup.

The company confirmed Kalanick’s departure from the top executive’s role Tuesday, after the New York Times reported major backers including Benchmark Capital demanded he resign. Kalanick will remain on the board of directors, the newspaper said.

While Uber has become the world’s most valuable startup, it’s been dogged by drama including allegations of sexual harassment and the use of software to bypass regulators. The ouster of the man who founded Uber in 2009 comes after a series of controversies shone a light on problems with the famously aggressive startup’s culture and governance.

As Uber’s public face, Kalanick has embodied the startup’s success. Earlier this month, he told staff of plans for a leave of absence, leaving the company to be run by a management committee. Despite recent turmoil, Uber’s business is growing. Revenue increased to $3.4 billion in the first quarter, while losses narrowed — though they remain substantial at $708 million.